HK Stock Market Move | The entire mobile phone industry supply chain is declining. Morgan Stanley has lowered this year's global smartphone shipment forecast by 15%.

The entire mobile phone industry chain is declining. As of the time of writing, Q TECH (01478) fell 5.52% to 7.7 Hong Kong dollars; Lens Technology (06613) fell 5.38% to 20.42 Hong Kong dollars; COWELL (01415) fell 5% to 23.54 Hong Kong dollars; BYD ELECTRONIC (00285) fell 2.32% to 30.3 Hong Kong dollars. Morgan Stanley released a research report stating that smart phone OEM manufacturers are expected to increase the average selling price and pass on most of the component costs. Such price increases are likely to lead to a substantial shortage in demand for Android smartphones, as end users are more price-sensitive. The bank lowered its forecast for global smartphone shipments in 2026 by 15% to 1.1 billion units. Apple's supply chain performance may also outperform the Android supply chain. Citigroup, on the other hand, stated that they have revised down their global smartphone shipment forecasts for the next two years to 1.04 billion and 1.17 billion units, representing a 17% decrease and a 12% increase year-on-year respectively, and predicted a 7% year-on-year increase in shipments to 1.25 billion units in 2028. The forecasts are based on memory shortages and price increases, as well as softening demand due to rising inflation. Average selling price forecasts for year-on-year increases are 7%, 2%, and 3% respectively.